News Details

Hapag-Lloyd has strong start to the year

 
Hapag-Lloyd has concluded the first quarter of 2021 with earnings before interest, taxes, depreciation and amortisation (EBITDA) of roughly $1.9 billion (approximately EUR 1.6 billion). Earnings before interest and taxes (EBIT) rose to roughly $1.5 billion (approximately EUR 1.3 billion). The Group net result improved to around $1.5 billion (EUR 1.2 billion).


“On the back of the high demand for container transports, we have benefited from better freight rates, especially in the spot market. On top of that, bunker prices have been lower than in 2020,” said Mr Rolf Habben Jansen, CEO of Hapag-Lloyd.


Revenues increased in the first quarter of 2021 by around 33 per cent, to roughly $4.9 billion (approximately EUR 4.1 billion), particularly due to a higher average freight rate, which increased by approximately 38 per cent to reach 1,509 $/TEU (Q1 2020: 1,094 $/TEU). Nevertheless, due to the demand-related congestion of port and hinterland infrastructures in many places as well as to a resulting shortage of freely available ships and containers, the transport volume was slightly below the level of the same quarter of the prior year, at roughly 3 million TEU (Q1 2020: approximately 3.1 million TEU), or minus 2.6 per cent. On the other hand, a roughly 27 per cent lower average bunker consumption price, which amounted to $384 per tonne in the first three months of the 2021 financial year (Q1 2020: $523 per tonne), had a positive impact on earnings.


Hapag-Lloyd expects that the EBITDA and EBIT for the current 2021 financial year as a whole will clearly surpass the prior-year level. While the positive earnings trend is likely to continue in the second quarter of 2021, a gradual normalisation is currently expected in the second half of the year. However, this forecast remains subject to considerable uncertainty due to a number of factors, including the above-average volatility of freight rates at this time, operational challenges such as infrastructural bottlenecks, and the inability to predict the future course or economic impacts of the Covid-19 pandemic, said a release. 

 

Source: Exim News Service: Hamburg, May 12

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